Brewing Company Molson Coors Q4 Gets Boost From Higher Pricing, Stock Rises

Shares of Molson Coors Beverage Company TAP are trading higher in premarket on Thursday.

The company reported a fourth-quarter FY24 sales decline of 2% year-on-year to $2.73 billion, beating the analyst consensus estimate of $2.70 billion.

The revenue decrease driven by lower financial volumes and unfavorable foreign currency impacts, partially offset by favorable price and sales mix.

Net sales from the Americas segment declined 2.6% on a reported and constant currency basis.

Net sales from EMEA & APAC segment increased 0.4%, driven by favorable price and sales mix as well as positive foreign currency impacts, partially offset by lower financial volumes.

Adjusted EPS of $1.30 beat the consensus estimate of $1.13.

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Underlying cost of goods sold (COGS) per hectoliter increased 3.2% primarily due to cost inflation related to materials and manufacturing expenses, unfavorable mix in both segments and volume deleverage in the Americas segment.

Gross profit climbed 0.4% Y/Y to $1.04 billion. Operating income for the quarter jumped 94.7% to $388.1 million with a margin of 11.9%.

Molson Coors Beverage held $458.4 million in cash and equivalents as of March-end. Operating cash flow for the twelve months totaled $1.91 billion with a free cash flow of $1.24 billion.

“We continued to enhance our profitability and financial flexibility in 2024. We ended the year with a net debt to underlying EBITDA ratio of 2.09 times, in alignment with our long-term target of under 2.5 times,” said CFO Tracey Joubert. “This, along with our strong cash generation, enabled us to invest in the business in ways we believe drive sustainable, profitable growth while returning cash to shareholders through a growing dividend and share repurchases."

Outlook: Molson Coors sees FY25 sales to increase in low single-digit versus 2024 on a constant currency basis.

Molson sees FY25 underlying diluted earnings per share: high single-digit increase compared to 2024.

TAP continues to expect underlying free cash flow of $1.3 billion, plus or minus 10% and $750 million incurred, plus or minus 5%.

Price Action: TAP shares traded higher by 6.64% at $57.00 in premarket at last check on Thursday.

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